Black Stone Minerals(BSM) - 2025 Q1 - Quarterly Results

Financial and Operational Highlights Black Stone Minerals maintained its $0.375 per unit distribution with 0.93x coverage, reporting $15.9 million net income and $82.2 million Adjusted EBITDA - The company maintained its quarterly distribution at $0.375 per unit, despite a distribution coverage of 0.93x The lower coverage was partially attributed to an expenditure on a seismic license to support mineral acquisitions in the Shelby Trough area[4] Key Financial and Operational Metrics | Metric | Q1 2025 Value | | :--- | :--- | | Total Production | 35.5 MBoe/d | | Net Income | $15.9 million | | Adjusted EBITDA | $82.2 million | | Distributable Cash Flow | $73.7 million | | Quarterly Distribution | $0.375 per unit | | Distribution Coverage | 0.93x | | Total Debt (end of Q1) | $63.0 million | Quarterly Financial and Operating Results Production declined year-over-year due to strategic farm-outs, with net income and cash flows impacted by derivative losses Production Total production for Q1 2025 decreased to 35.5 MBoe/d, primarily from reduced working-interest volumes, with mineral and royalty volumes at 96% Production Volume Trends | Production Volume (MBoe/d) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Mineral and Royalty | 34.2 | 34.8 | 38.1 | | Working-Interest | 1.3 | 1.3 | 2.2 | | Total Production | 35.5 | 36.1 | 40.3 | - The year-over-year decline in working-interest volumes is a result of the Partnership's strategic decision to farm out its working-interest participation to third-party capital providers[6] Realized Prices, Revenues, and Net Income Average realized price per Boe increased 10% to $33.94, but net income fell to $15.9 million due to a $56.0 million derivative loss Realized Prices, Revenues, and Net Income Trends | Financial Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Average Realized Price ($/Boe) | $33.94 | $30.81 | $30.87 | | Oil and Gas Revenue | $108.3 million | $102.3 million | $113.2 million | | Net Income | $15.9 million | $46.3 million | $63.9 million | - The Partnership reported a significant loss on commodity derivative instruments of $56.0 million, comprising a $3.6 million realized loss and a $52.4 million non-cash unrealized loss[11] Adjusted EBITDA and Distributable Cash Flow Adjusted EBITDA declined to $82.2 million and Distributable Cash Flow to $73.7 million compared to the prior year Adjusted EBITDA and Distributable Cash Flow Trends | Non-GAAP Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $82.2 million | $90.1 million | $104.1 million | | Distributable Cash Flow | $73.7 million | $81.9 million | $96.4 million | Financial Position and Distributions Black Stone had $63.0 million drawn on its credit facility, a $375.0 million borrowing base, and approved a $0.375 per unit distribution with 0.93x coverage - As of May 2, the Partnership had $63.0 million of debt outstanding and approximately $4.3 million in cash[14] - The Board approved a cash distribution of $0.375 per common unit for Q1 2025, with a distribution coverage ratio of 0.93x[16] Activity Update Development and acquisition activities continued, with 11 new wells in Shelby Trough and $14.2 million in mineral interests acquired Development Activity Development is active across key basins, with 11 gross wells turned to sales in Shelby Trough and 24 wells spud in the Permian Basin - In the Shelby Trough, Aethon turned 11 gross (0.7 net) wells to sales and its development program remains on track with an estimated 17 gross (1.0 net) additional wells expected to turn to sales during the remainder of 2025[17] - In the Permian Basin (Culberson County, Texas), a large operator has planned over 35 gross (1.25 net) wells, with 24 spud to date, and nine are expected to turn to sales in Q4 2025[19] Acquisition Activity Black Stone expanded its mineral portfolio, acquiring $14.2 million in Q1 2025, totaling $160.6 million since September 2023 - In Q1 2025, Black Stone acquired $14.2 million of additional mineral and royalty interests[20] - From September 2023 through May 2025, the Partnership has completed $160.6 million of mineral and royalty acquisitions[20] Update to Hedge Position Black Stone has commodity derivative contracts in place for 2025 and 2026, hedging oil at $71.22/Bbl and natural gas at $3.36-$3.45/MMBtu for 2025 Oil Swap Positions | Period | Oil Swap Volume (MBbl) | Oil Swap Price ($/Bbl) | | :--- | :--- | :--- | | 2Q25 - 4Q25 | 555 per quarter | $71.22 | | 1Q26 - 4Q26 | 390 per quarter | $64.89 | Gas Swap Positions | Period | Gas Swap Volume (BBtu) | Gas Swap Price ($/MMBtu) | | :--- | :--- | :--- | | 2Q25 | 10,920 | $3.36 | | 3Q25 - 4Q25 | 11,040 per quarter | $3.45 | | 1Q26 - 4Q26 | 11,700 - 11,960 per quarter | $3.67 | Financial Statements and Non-GAAP Reconciliation This section presents consolidated financial statements and non-GAAP reconciliations, detailing revenues, expenses, and key adjustments for Q1 2025 Consolidated Statements of Operations Q1 2025 consolidated statements show total revenues of $59.3 million and net income of $15.9 million, primarily due to a $56.0 million derivative loss Consolidated Statements of Operations (in thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenue | $59,252 | $105,493 | | Oil and gas sales | $108,328 | $113,235 | | Loss on derivatives | ($56,001) | ($11,290) | | Total Operating Expense | $42,091 | $41,519 | | Income from Operations | $17,161 | $63,974 | | Net Income | $15,948 | $63,927 | | Net Income per Common Unit (diluted) | $0.04 | $0.27 | Supplemental Operating and Financial Data Supplemental data for Q1 2025 shows total production of 3,192 MBoe, with oil at $69.96/Bbl and natural gas at $3.92/Mcf Supplemental Operating and Financial Data | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Production (MBoe) | 3,192 | 3,668 | | Realized Oil Price ($/Bbl) | $69.96 | $77.17 | | Realized Nat Gas Price ($/Mcf) | $3.92 | $2.55 | | Avg. Realized Price ($/Boe) | $33.94 | $30.87 | Reconciliation of Non-GAAP Financial Measures This section reconciles GAAP Net Income to Adjusted EBITDA of $82.2 million and Distributable Cash Flow of $73.7 million for Q1 2025 Reconciliation of Non-GAAP Financial Measures (in thousands) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $15,948 | $63,927 | | Unrealized loss on derivatives | $52,390 | $25,087 | | Depreciation, depletion, and amortization | $9,130 | $11,639 | | Other adjustments | $4,699 | $3,464 | | Adjusted EBITDA | $82,167 | $104,117 | | Cash interest & preferred distributions | ($8,489) | ($7,728) | | Distributable cash flow | $73,677 | $96,388 | Corporate Information and Disclosures This section provides details on the upcoming conference call and important forward-looking statements, highlighting inherent risks Conference Call Black Stone will host a conference call and webcast on May 6, 2025, at 9:00 a.m. Central Time, to discuss Q1 2025 results - A conference call to discuss Q1 2025 results is scheduled for May 6, 2025, at 9:00 a.m. Central Time[24] Forward-Looking Statements This report contains forward-looking statements subject to risks and uncertainties, including oil and gas price volatility and production levels - The news release includes forward-looking statements that are subject to risks and uncertainties, including the volatility of oil and gas prices, production levels, and the level of drilling activity by operators[26][27]